What is cryptocurrency and how it works

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Home Page What is cryptocurrency and how it works

If you delve into the history, the main cryptocurrency of the world is bitcoin, a very young financial instrument that appeared in 2008. And began to be in demand closer to 2012. Then the total value of all bitcoins was equal to 140 million dollars. And indeed, at the household level, they started talking about cryptocurrency only in 2018, after its sharp growth. Now the total value of bitcoins is 750 billion dollars.

Where does cryptocurrency come from? It's simple, if you understand the analogy. Bitcoin consists of blocks. Each block is an equation, for the solution of which, you receive a reward. But only a machine can solve this equation: a processor or a video card. And people who buy equipment for cryptocurrency mining receive the title of a miner. But each time it is increasingly difficult to mine bitcoin, if nothing changes, then with the current capacity, the final number of bitcoins will be mined only by 2114. Although by now 90.6% has already been mined. According to a similar principle, other cryptocurrencies are mined, but the most popular for mining is still Bitcoin.

Why are there so many cryptocurrencies? And how are they different?

These questions are of interest to a lot of people. To understand where so many cryptocurrencies come from, you need to understand what networks are.

The network works as follows: Vitaly Buterin made a cryptocurrency ether and published the source code of the coin in the network. Further, other programmers began to make their coins based on this code. After that, they began to publish their coins based on this network. The same thing happens with the Bitcoin network, and many others. In other words, anyone can make a token in some network. But to make a new network is not an easy task. Most coins are made on the ETH or BSC network.

At the moment, there are a huge number of networks. For the average user, their difference lies only in the cost of transactions.

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Comments:

Dollie Swanson

How Can I Talk To You In Person? Is That Even Realistic?

Ayoub Field

Interesting, But Still Would Like To Know More About It. Loved The Article!:-)

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